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Free Zones in Oman Free Zones in Oman Oman encourages the setup and operation of foreign business in its Free Trade Zone which entitle such business with special incentives, merits and facilities according to the Free Zones Law. There are four operational free zones in Oman at the northern industrial city of Sohar, next to the southern port of Salalah, at Duqm in the central coastal area and at Mazunah, close to the Yemen border. 1- Sohar Port and Free Zone SOHAR Port and Free Zone is a deep-sea port and free zone in the Middle East, situated in the Sultanate of Oman, 220km northwest of its capital Muscat. The development of the 4500 hectare Free Zone is planned in five phases. Due to its fit-to-suit incentives and value propositions, The Free Zone is an ideal location for investors in the following clusters: semi-finished iron and steel products, plastics and rubber; ceramics; chemicals, food and perishables, white goods and furniture; and the automotive industry. The Sohar Free Trade Zone has attracted 14 foreign companies, which have invested in metals, minerals and logistics. Other sectors covered include oil and gas, light manufacturing, chemicals and food processing. In May 2013, the zone announced it was expecting $450m in investments over the next year, with $250m from India. Facilities The zone affords easy access to the East African coast and the Indian subcontinent, and offers plentiful land on which to build units. The first 500-hectare phase of the zone has already been developed, with a further 4500 hectares planned. Benefits 100 per cent foreign ownership (minimum two shareholders); 10-year exemption from corporate tax; No customs duties; No restrictions on sales within the GCC; a standard 5 per cent GCC customs duty applies; Minimum Omanisation levels of 15 per cent; Single-window licensing procedure. Industries Metals and steel; Food; Light manufacturing and assembly; Logistics and trade. Contacts: SOHAR Industrial Port Company PO Box 9, Postal Code 327 Sohar, Sultanate of Oman Tel: +968 26852700 Fax: +968 26852701 Web: www.freezonesohar.com 2- Salalah Free Zone It is an advanced and important step towards the establishment of the free zone in Salalah Port after studies have proved its value and advantages. That step was exemplified by signing an understanding memorandum related to the development of the first stage of free zone project with Salalah Company of Ports Service. The first phase of this free zone is complete, with further phases of development planned. The second phase, to be completed in 2015-20, will focus on developing sectors within the zone, while the third phase, due to be finished in 2025, will expand the zone’s infrastructure and facilities. The zone is supporting the development of a new sea-air cargo corridor, in partnership with Oman Air and Salalah port. Thus, the free zone advantages extend to Dhofar region; hence, it serves a fundamental goal of the government which is the regional development. Now the operator of Salalah free zone is Salalah Companies for Free Zones. Facilities The Salalah Free Zone offers office space for rental, as well as business ‘incubators’ within its newly opened headquarters. There is also access to a deep sea port and international airport. Benefits 100 per cent foreign ownership; 30-year tax holiday on profits and dividends; No corporate or personal income tax; No restrictions on the repatriation of capital or profits; No customs or excise duties; No minimum capital requirements; Competitive labor and utilities costs. Industries General trading license: import, export, distribution and storage; Trade license: import, export, distribution and storage of specific items; Industrial license: manufacturing, import of raw materials and export of finished products; Service license: completion of specified services. Contacts: PO Box 87, PC 217 Al-Awqadain, Oman Tel: +968 2 321 2999 Fax: +968 2 321 2998 Email: [email protected] Web: www.sfzco.com 3- The Duqm Special Economic Zone Authority (SEZAD) The free zone comprises a sea port, industrial area, town, fishing harbor, tourist zone, logistics centre and an education and training zone. It has a land area of 1,777 square kilometers and 80km of coastline. The first phase of Duqm port is complete and will handle containers and bulk cargo. Its commercial quay can accommodate eight vessels. A 1km-long government quay is also under construction and, when complete, will accommodate the Royal Navy, Coast Guard and fast ferries. This zone also houses a dry dock (two docks of 410 meters each), plus 2.8km of quayside for ship repairs. Duqm airport is scheduled to begin operation in 2015, with a prospective capacity of 500,000 travelers a year. It will have a 4km runway and a cargo terminal with 50,000 tones of capacity. A total of 365 sq km has been allocated for use by industrial and logistics firms. Benefits No personal income tax; Long-term leases and reduced rates; No restrictions on foreign ownership; No minimum investment capital; Waivers and reduction of corporate tax and customs duties; 100 per cent repatriation of capital and profits. Industries Industrial estates; Warehousing and logistics villages; Tourist villages and resorts; Commercial, office and residential complexes. Contacts PO Box 25, PC 103 Bareeq al-Shatti, Oman Tel: +968 2 200 0088 Fax: +968 2 200 0099 Email: [email protected] Web: www.duqm.gov.om 4- Al-Mazunah Free Zone Free Zone in Al Mazunah started operation in November 1999. It is located in Dhofar governorate near the Yemeni borders which is only 260 km from Salalah and 245km from Al Ghedha, 500 km from Saon which are the 2 nearest towns to the sisterly Republic of Yemen. The area is located outside the borders of Omani customs. Therefore, the goods can enter to Mazunah without taxes. The investors also can enter the area without a visa or complete the border's procedures between Republic of Yemen and the Sultanate of Oman. The Mazunah area provides excellent chances for those who are interested in trading between Oman and Yemen or establishing storage utilities. There are commercial shops and exhibitions in the area, in addition to the general storage and other utilities plus communication services and the essential setup services such as electricity, water, and roads. Benefits Omanisation rates of 10 per cent; Customs duty exemption; Exemption from commercial agency law; 30-year income tax holiday; 100 per cent capital ownership; Yemeni employees can work without visas; No minimum investment required; Imported goods can be sold into the larger Omani market. Industries Industrial: factories, food, plastics, textiles and maintenance; Commercial: trading and storage of goods, cars and spare parts, livestock, food, machinery and equipment; Supporting services: transport and logistics, distribution and clearing, handling and commercial correspondence. Contacts: Al-Mazyunah Free Zone Tel. +968 23382222 Fax +968 23382229 E-Mail: [email protected] /[email protected] Head Office in Knowledge Osis Muscat Tel. +968 24155100 E-Mail: [email protected] Website: http://portal.peie.om/mfz/ Industrial Estates in Oman Oman is home to 9 industrial estates operated by the Public Establishment for Industrial Estates (PEIE). The first, at Rusayl, was opened in 1983 and inaugurated in 1985. All nine estates cover an area of approximately 88,300 million sq m. The PEIE offers packaged facilities and services, including land and buildings for industrial development, nearby hotel accommodation for guests and staff, restaurant and banking facilities, telecommunications infrastructure, and convenience and retail stores. Incentives include 100 per cent foreign share capital, a five-year tax holiday and no personal income tax, exemption from customs duties, special loan terms for joint government projects in agriculture, fisheries, health and traditional handicrafts, and export credit insurance. PEIE’s Corporate Objectives Recognize our employees' talents and contributions, and empowering them to achieve their full professional potential; Assist the companies to prosper in the competitive world of the global marketplace; Establish Oman as a vibrant business destination based on our abundant natural, cultural and human resources and create meaningful employment opportunities for nationals; Develop industrial estates and high-tech office accommodations that meet the needs of today’s Knowledge-driven businesses; Maintain sustainable business climate that attracts and generates investment. PEIE provides packaged facilities and services, including: Good and eco-friendly locations; Strong connections - well established economic, social and cultural ties with the Middle East, the Indian sub-continent, Africa, Far East, Europe and the USA; Land and buildings available for bespoke industrial development; 100% foreign share capital for companies in Knowledge Oasis Muscat; Community spirit; Excellent telecommunications; Close by modern and quality hotel accommodations for visiting clients and staff; Restaurant and banking facilities; Convenience and retail stores. 1- Rusayl Industrial Estate Rusayl Industrial Estate is situated 45 km from Muscat and occupies 7.9 Million square meters. Established in 1983, Rusayl is Oman’s flagship industrial estate. From its initial 12 factories, Rusayl is now a bustling estate with 211 factories. Factories in operation produce a wide spectrum of consumer as well as industrial-oriented products, ranging from: chemicals; batteries; electrical and building materials; fiber
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